Statement of Operating Expenses

Operating Expense Statement - The operating expense statement is the annual statement of all apportionable utility costs that a landlord is required to provide to their tenants. It compares the actual operating expenses incurred with the advance payments made and results in either an additional payment or a credit balance for the tenant.

What exactly does “operating cost statement” mean?

The legal basis for the operating cost statement is the Operating Cost Ordinance (BetrKV) in conjunction with Section 556 of the German Civil Code (BGB). The BetrKV defines a total of 17 types of apportionable costs that a landlord may pass on to their tenants. These include, among others, property tax, water supply, sewage, heating costs, hot water costs, elevator costs, street cleaning, garbage collection, building cleaning, garden maintenance, lighting of common areas, chimney sweeping, property and liability insurance, building superintendent, communal antenna or cable connection, as well as other operating costs.

The billing period always covers twelve months and does not necessarily have to correspond to the calendar year. After the end of the billing period, the landlord has a statutory deadline of twelve months to send the bill to the tenant. If the landlord misses this deadline, they generally can no longer assert any additional claims-any credit in the tenant’s favor, however, remains valid and must be refunded.

A prerequisite for the apportionability of costs is that a corresponding agreement on the apportionment of operating costs has been included in the lease agreement. Without such a clause, all operating costs are already covered by the base rent. In practice, nearly all lease agreements contain an operating costs clause that either refers to the BetrKV or explicitly lists the individual cost categories.

Upon receipt of the statement, tenants have the right to inspect the original supporting documents-a request for inspection must be submitted to the landlord or the property management company. Objections to the statement must be raised in writing within twelve months of receipt-after that, the tenant is barred from raising them, unless the delay in asserting the claim is beyond their control.

Allocation Keys and Common Errors

The allocation of operating costs among individual tenants is based on a specified allocation key. The most common keys are living space in square meters, the number of people in the household, individual consumption (particularly for heating and water costs), or a fixed share per residential unit. For heating costs, the Heating Costs Ordinance (HeizkostenV) stipulates that at least 50% and no more than 70% must be billed based on consumption-the installation of heating cost meters is mandatory for central heating systems.

The most common errors in operating cost statements include:

• Allocation of non-allocable costs (administrative costs, maintenance reserves, repair costs)
• Incorrect specification of the billing period (incorrect year-end dates or periods exceeding twelve months)
• Calculation errors in the allocation (incorrect total area, incorrect shares of individual units)
• Use of an unagreed allocation formula without objective justification
• Late delivery of the statement after the twelve-month period has expired

According to the German Tenants’ Association, roughly one in two operating cost statements is incorrect-a finding that points to the complexity of the matter and frequent technical errors in their preparation.

Special considerations for properties managed by a WEG

For condominiums managed by a WEG (condominium owners’ association), the landlord’s operating cost statement is based on the WEG annual statement. The landlord must extract the costs attributable to their individual unit from the WEG statement and incorporate them into their own operating cost statement. The deadline for the operating cost statement does not begin until the WEG annual statement has been approved-in the event of delays in the WEG statement, the landlord can therefore generally meet the twelve-month deadline if they issue the statement immediately after approval.

Practical Tip for Owners in Nuremberg and Franconia

In the Nuremberg metropolitan region, experience shows that average operating costs range from approximately 2.50 to 3.50 euros per square meter per month-with heating costs and municipal taxes accounting for the largest share. Property tax, which has been calculated according to the area-based model in Bavaria since the 2025 reform, varies significantly depending on the location and the municipality’s assessment rate: In Nuremberg, the assessment rate for Property Tax B is currently 535%, in Erlangen 410%, and in Fürth 450%. We recommend that landlords prepare the statement promptly after the end of the billing period and not wait until the last month of the statutory deadline. A professional property management company or specialized billing service provider in Nuremberg can help avoid formal errors and ensure compliance with legal requirements-thereby protecting against the complete loss of additional claims in the event of a missed deadline.

Frequently Asked Questions

What is the deadline for the operating costs statement?

The landlord must deliver the operating costs statement to the tenant no later than twelve months after the end of the billing period-not merely send it, but ensure it is actually received. If the billing period ends on December 31, the statement must be received by the tenant by December 31 of the following year. After this deadline has passed, the landlord may not make any additional claims, unless the delay was beyond the landlord’s control-for example, because the WEG resolution on the annual statement was made late or because the landlord was waiting for consumption data required from third parties. The landlord must pay out any credit balance in favor of the tenant even after the deadline has passed.

Which costs may not be passed on to tenants?

In particular, the following costs are not apportionable: administrative costs (property management, bookkeeping, account management), maintenance and repair costs, reserves for future repairs, and costs arising from vacancies-these are borne solely by the landlord. One-time costs such as the purchase of new equipment or modernization measures intended to improve the quality of living are also not included in the operating cost statement. Expenses for the repair or replacement of defective systems (e.g., heating pump, elevator control system) are maintenance costs that the landlord must cover from their own funds or the base rent-they may not be billed as operating costs.

How can a tenant review the operating cost statement?

Tenants have the right to inspect the original invoices, fee notices, utility bills, and maintenance logs at the landlord’s or property management company’s office. They may have copies made at their own expense. Access must be granted to a reasonable extent-usually during regular office hours and without unreasonable waiting times. Objections to the statement-such as incorrect allocation keys, non-apportionable cost items, or calculation errors-must be raised in writing with the landlord within twelve months of receiving the statement. In case of discrepancies, it is advisable to seek advice from the local tenants’ association or a specialized attorney-in Nuremberg, the DMB Mieterverein Nürnberg und Umgebung e. V. is a competent first point of contact.

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